Job creation and deep decarbonization

What explains the choice of corporate political strategy in environmental politics? Drawing on recent models of actor strategy formation in political economy, this article argues that basic material interests of firms are translated into strategies in the context of institutional environments. I advance a typological model that posits how distributional effects—positive versus negative—and perceived regulatory pressure—low versus high—interact in leading firms to adopt one of four ideal-type strategies: opposition, hedging, support, and non-participation. This article examines the model through the case of corporate strategies in the making of the European Union’s Emission Trading Scheme. The article contributes to theory-building on business strategy in environmental politics by offering a probabilistic explanatory model, and it flags hedging strategies as an increasingly prevalent form of business behavior.

Climate policy costs of spatially unbalanced growth in electricity demand: the case of datacentres in Ireland

What explains public support for climate policies? A review of empirical and experimental studies

Are development and decarbonization conflicting or complementary goals? In this report, we explore how Latin America and the Caribbean can improve socioeconomic and development outcomes while also reaching net-zero greenhouse gas emissions by 2050. Specifically, we introduce SiSePuede, an open source decarbonization modeling toolkit that evaluates decarbonization actions costs, benefits, and emissions reductions across the economy. We find that maximizing actions could achieve net-zero emissions in the region before 2050 and net $2.7 trillion in benefits compared to more traditional development. Benefits include massive fuel cost savings; avoided costs from reduced air pollution, congestion, and car crashes; and the value of ecosystem services from forests. Although there are many paths to net-zero emissions, three actions are critical: producing electricity with renewables, electrifying transport, and protecting and restoring forests by halting deforestation and shifting food-production patterns. Economy-wide strategies that implement these actions at scale can reduce emissions dramatically and net enormous benefits to the region even amid deep uncertainties, with a median of $1 trillion in net benefits across all scenarios. These benefits are unevenly distributed across sectors and actors, and across time, so realizing them and ensuring a just transition to net zero requires governments to overcome important financing, regulatory, infrastructure, and other barriers. Each country must tailor its own strategy to address development and emissions goals based on local priorities, capabilities, resources, and technical capacity. SiSePuede provides a robust analytical foundation to support these efforts.

Member states of the United Nations Framework on Climate Change (UNFCCC) are urged to limit its emission in order to maintain global temperature to 1.5 degrees Celsius that is textualised in the Glasgow Climate pact. In order to implement the mandate, Indonesia introduced several policies at national level. However, emerging issues in the public sector challenges the implementation of climate policy: fragmented agencies. This research attempts to address two questions; How fragmenting agencies impacts the implementation of climate policies? How can the implementation be possible amidst the emergence of fragmented agencies? This research utilises normative-empirical methods, where it would normatively analyse environmental policy agenda problems in selected ministries as public sector actors, while it would empirically examine the impact on the issue. This research shows that the issue of fragmented agencies in Indonesia has become the main obstacle in implementing climate policies due to the unsynchronized sectoral policy with the current climate policies in each ministry, where such fragmentation then obstructs good environmental governance. Furthermore, the implementation of Indonesia’s environmental and climate policies would not be optimally implemented if the aforementioned issue cannot be resolved through each ministries agenda restructuration. Another recommendation is to utilise the Penta Helix method in optimising climate policy implementation by multisectoral cooperation in climate policy.

Consumption- and production-based accounting approaches for national greenhouse gas (GHG) emissions provide different insights to support climate policymaking. However, no study has yet comprehensively assessed the consumption-based GHG emissions of the entire New Zealand’s economy. This research, for the first time, quantified New Zealand’s GHG emissions using both consumption- and production-based accounting approaches and considered the policy implications for adopting a consumption-based approach over a production-based approach. A global multi-regional input-output (MRIO) analysis was undertaken to calculate the consumption- and production-based GHG emissions of New Zealand for the year 2012. The MRIO analysis was based on the Eora database, which accounts for 14,839 industry sectors from 189 countries. Given the sectoral classification of each country is quite different and in order to ease interpretation of the results, the industry sectors of each country were classified and aggregated into 16 key sectors, and GHG emissions were calculated for those key sectors. The MRIO analysis showed that New Zealand’s consumption- and production-based GHG emissions in 2012 were 61,850 and 81,667 ktCO2eq, respectively, indicating that the country was a net exporter of GHG emissions in 2012. The dominant contributors to the consumption-based GHG emissions were the other services and construction key sectors (each representing 16% of consumption-based emissions), followed by food and beverages (14%), transport and equipment (12%) and financial and trade services (11%), whereas the dominant contributor to the production-based GHG emissions was the agriculture key sector (representing 52% of production-based GHG emissions). The results of the study provided two key insights to support climate mitigation activities and policymaking. First, the consumption- and production-based accounting approaches results have different rankings for the most dominant sectors contributing to New Zealand’s GHG emissions. Second, only the consumption-based accounting approach enables the quantification of the embodied emissions in New Zealand’s trade activities, and it indicated that a large proportion of GHG emissions are embodied in New Zealand’s trade activities. These insights, therefore, have important implications for future policies that could positively influence the consumption patterns of New Zealand citizens and the production structure and efficiency of New Zealand’s trade partners. This research quantified New Zealand’s GHG emissions using both consumption- and production-based accounting approaches. Given the two accounting approaches provided different insights, both approaches should be used in a complementary way when developing climate policies. However, implementation of a consumption-based accounting approach to support development and implementation of climate policies and instruments requires further consideration.

This report documents the JRC/IPTS modelling activities of the 2009 European Commission Communication "Towards a comprehensive climate change agreement in Copenhagen", which establishes the EU's position in the Copenhagen negotiations. According to the POLES model, the estimated global direct abatement costs of an emission reduction scenario compatible with the EU 2 degrees target are ¿175 billion by 2020. The report also highlights the crucial importance of energy efficiency improvements in achieving the overall emission reduction targets. Finally, the analyses with the POLES and GEM-E3 models underline the fundamental role that a global carbon market can play in implementing climate policies in a cost-efficient way.

Moving towards net-zero emission societies is projected to provide human health co-benefits. However, the magnitude of these co-benefits is poorly documented and might be context specific. Synthesising the evidence on these co-benefits could enhance the engagement of decision makers and populations in climate mitigation actions. We performed database searches of PubMed, Web of Science, and Scopus for studies published between database inception and Jan 1, 2024, identifying 3976 papers. Of these, 58 quantitative studies met our inclusion criteria and were included in this systematic review. These 58 papers explored 125 net-zero emission scenarios and considered various pathways by which climate policies can affect human health. Pathways addressing air quality, physical activity, and dietary changes found substantial health co-benefits, with a median mortality reduction of 1·5%. National or sub-national studies showed that net-zero policies would yield substantial local air quality benefits, independently of the actions taken in neighbouring countries. However, these co-benefits varied with explored emission sector, decarbonisation levers, modelling approach, and location. Studies that included a cost–benefit analysis estimated that monetised benefits outweighed the costs of implementing climate policies. This systematic review highlights the need for a standardised framework to assess and compare health impacts of climate mitigation actions across sectors and confirms that achieving net-zero goals supports far-reaching public health policies.

Financial incentives to poor countries promote net emissions reductions in multilateral climate agreements

This paper evaluates the impact of climate policy uncertainty on renewable and non-renewable energy consumption in the United States over the quarterly data from 2000Q1 to 2021Q3. Economic growth and crude oil prices are added to the energy consumption functions as control variables. The paper considers several approaches to model both renewable and non-renewable energy demand. It is found that crude oil prices promote non-renewable energy demand and climate policy uncertainty reduces it. Surprisingly, the impact of economic growth on non-renewable energy consumption is positive but insignificant. It is also observed that economic growth promotes renewable energy demand, and crude oil prices reduce it. Furthermore, climate policy uncertainty positively affects renewable energy demand in the long run. Some policy implications are provided for reducing non-renewable energy consumption and promoting renewable energy use in the United States through climate policy implementation.

The role of space-based data in European climate policies

How to incentivise hydrogen energy technologies for net zero: Whole-system value chain optimisation of policy scenarios

Achieving the goals and actions of SDG11 ‘Sustainable Cities and Communities’ requires targeted sustainability and climate policies, and skilled and focused implementation. What are the roles and required skills of sustainability professionals in this implementation? In-depth interviews with 20 Australian sustainability professionals in public and private sector roles examined barriers and facilitators for implementation of SDG11-related climate and sustainability policies and programs. Results indicate that sustainability professionals, with their high levels of knowledge of climate science and actions, are relied on for specialist advice. Sustainability professionals were found to act as facilitators or intermediaries, linking and championing action within their organisations and between built environment sectors. Likewise, sustainability professionals were found to act as change agents facilitating transitions towards stronger urban sustainability and climate action. While they are pivotal for many organisations’ effectiveness, their work is often reliant on their ‘intervention’ skills of persuasion, as much as wider organisational power.

This paper develops a global model of climate policy, focusing on the choice between tax and cap-and-trade solutions. The analysis assumes that the world can be split into two regions, with two fuels that both lead to carbon emissions. Region A consumes all fuels, and is responsible for defining and implementing climate policy. Region B produces all of fuel 1 (oil), while fuel 2 (interpreted as coal, natural gas, or renewables) is both produced and consumed in region A. The paper studies three model variants. All involve full policy coordination in each country block, but no coordination across blocks; and all involve an optimal producer tax on fuel 1 by region B. In model 1, region A sets two fuel consumption taxes, one for each fuel. The optimal region A tax on fuel 1 then exceeds the Pigou level as defined by the region; the tax set on fuel 2 is Pigouvian. The presence of a second fuel in region A reduces region B’s optimal tax on fuel 1. In model 2, region A sets a common carbon tax, which is lower (higher) for fuel 1 (2) than in model 1. In model 3, region A sets a carbon emissions cap. This enhances region B’s strategic position via the trade-off between fuels 1 and 2 in region A, following from the cap. In realistic cases, this leaves region A strategically weaker under a cap policy than under a tax policy, more so the less carbon-intensive the local fuel (2) is. In conclusion, a fuel-consuming and importing region that determines a climate policy will typically prefer to set a carbon tax, instead of setting a carbon emissions cap. The main reason is that a tax is more efficient than a cap at extracting rent from fuel (oil) exporters.

The present research is aimed at contributing to the Latvian national climate policy development by projecting total GHG emissions up to 2030, by evaluating the GHG emission reduction path in the non-ETS sector at different targets set for emissions reduction and by evaluating the obtained results within the context of the obligations defined by the EU 2030 policy framework for climate and energy. The method used in the research was bottom-up, linear programming optimisation model MARKAL code adapted as the MARKAL-Latvia model with improvements for perfecting the integrated assessment of climate policy. The modelling results in the baseline scenario, reflecting national economic development forecasts and comprising the existing GHG emissions reduction policies and measures, show that in 2030 emissions will increase by 19.1 % compared to 2005. GHG emissions stabilisation and reduction in 2030, compared to 2005, were researched in respective alternative scenarios. Detailed modelling and analysis of the Latvian situation according to the scenario of non-ETS sector GHG emissions stabilisation and reduction in 2030 compared to 2005 have revealed that to implement a cost effective strategy of GHG emissions reduction first of all a policy should be developed that ensures effective absorption of the available energy efficiency potential in all consumer sectors. The next group of emissions reduction measures includes all non-ETS sectors (industry, services, agriculture, transport, and waste management).